05-29-59SpMtg 117
NAY 29TH~ 1959.
A Special Meeting of the. City Council, scheduled to be held at
!0:00 A. M., was delayed untxl 12:00 Noon, due t.o a Public Hearing
having been called by the Palm Beach County Conmmssion for the purpose
of discussion with the City Council and interested parties concerning
the request of the City of Delray Beach for dedication of certain-
County owned lands in the Lake Ida area, by the County Commission,
to provide suitable lands for City of Delray Beach Recreational Facil-
ities.
The Special Meeting of the City Council was called to order by
Mayor Talbot, with· City Manager W. E. Lawson Jr., Ci~ty Attorney Harry
T, Newett and Commssioners J.. LeRoy Croft, Charles H. Harbison, Fred
B, McNeece and George V. Warren being present.
This meetinz had been called for the purpose of considering the
'Water Agreement" and the Sewage Agreement betw. een the City of Delray
Beach and South Coast Development Corporatio.n (the subdivider an.d
owner of lands platted and described as Tropic Palms, Plat No. 2) and
Tropical Palms, Inc., (the subdivider and owner of lands platted and
described as Tropic Palms - Plat No. $).
· It Il ,l~
Review of the proposed Agreements revealed the necessity of ef
fecting minor changes and the meeting was adjourned until ll:O0 A. M.
Saturday, Ney 30th, and the City Attorney was requested to amend the
said Agreements for consideration by-the Counoil at said hour of ll:O0
A. M., Saturday. l
T.he Special Meeting, adjourned on Friday,1 ~e#convened on Saturday,
a.t 11.90 A, M., and was called to ord.er by Mayor George Talbot Jr.,
with C~ty _N~_nager Vt. E. Lawson Jr., C~ty Attorney Harry T. Newett and
Commissioners J. LeRoy Croft, Charles H. Harbison, Fre~ B. McNeece and
George V. Warren being present.
City Manager. Lawson submitted the .amended V~ater. Agreement a.nd the
Sewage Agreement, as prepared by the C~ty Attorney ~n co-operation
with Att~.y. A, J. Mu.sselman acting in behalf of Southcoast Development
Corporation and Tropical Palms, Inc. ~.
Mr. Henry J. Mellon and Associate Mr. Wm. V. McKmnney were present
and expressed their approval of the amended Water Agreement and the
Sewage Agreement.
Commissioner Warren then moved for ADOPTION of the "Water Agree-
ment'' as amended. Motion was seconded by Commissioner McNeece and
upon Call of Roll received the unanimous approval of the Council.
The 'Water Agreement" a~opted is as follows:
V~A TER AGREEMENT
THIS AGREEMEI~, Made this BOth day of May, A. D., 1~$~, between
CITY.OF DELRAY B~E~.CH, a municipal corporation in .Palm Beach County,
Florida, of the f~rst par. t, hereinafter called "C~ty", and SOUTH COAST
DEVELOP~ENT CORPORATION (the subdivider and owner of lands platted and
described as Tropic Palms, Plat No. 2), and TROPICAL PAINS, INC. (the
subdivider and owner of lands platted and described as Tropic Palms
Plat No. 3), of~the second part, hereinafter called the Owners-Develop-
ers or Assignees.
~'~F~EAS, upon petition of the foregoingowners, the City did on.
January lB, 1~88, a~nnex the said Tropic Palms, Plat No. 2, and Tropic
Palms, Plat No. B (which shall hereinafter be collectively referred to
as "property") under the terms and conditions set forth in Ordinance
No. 6-277; and
WHEREAS, said Owners are about to develop said property by con-
structing buildings, residences and other improvements thereon, and in
order to meet requirements of certain Federal Board of Health as to
health requirements and the Veterans' Administration, the Federal Hous-
ing Administration and private lending agencies as to financing and
other requirements, it is necessary that adequate water and sewer fa-
cilities be provided for or made available to each building or resi-
dence constructed on said property; and
~-~EREAS, Owners are willing to undertake the construction, in-
stallation and completion of a sewer system for said properties, and
to install water mains and supply lines for such properties, so that
all buildings and residences constructed on Owners-Developers proper-
ty by Owners-Developers or ~y any person, firm or corporation holding
by, through or under Owners Developers,.may have furnished to them
and to their occupants an adequate domestic water ~up?ly and sewer
disposal service, subject to all the ter~s and .,,~,~.,.o~.~ of this a-
wnreement; provided, however, that the C~'~y shall £~rni~h water to
ers-Developers at the "entrance" or "s~bd±vision gates': of said
properties at a rate hereinafter fixed, and Owners--Developers may
thereafter distribute and resell such w~.ter within said property at
rates not to ~xceed the usual retail rates charged other ~sers within
the City; an~
~PHEREAS, .:he Cindy is willing to sell water to said ~mers-Devel-
opers for their properties here~nabove described upon the terms and
conditions hereinafter set forth.
NOV~, THEREFORE, IT iS ~UTUALLY'AGREED AS FOLLG,¥S:
1. Upon OwT. ers--.Developers installing at their cost the necessary
transmission lines, City agrees to deliver water to the property
through a master meter to Owners-Developers at the ra'~e hereinafte~
set forth, in the same manner as to other residential users of water
in the City; that is to say, if the City on account of unavoidable
accidents or other causes not reasonably within its control, shall be
prevented from furnishing water, or from furnishing it in th~ usual
amount or under the normal pressure~ the Owners-Developers shall
have ~o action against the City for damages occasioned thereby, but
the C~ty shall, unless the result be a practically total destruction
of its property, proceed With all reasonable diligence to put itself
and its works in condition to continue the water service. During the
existence of each interruption in or curtailment of service, the City
shall furnish to the Omners-Developers so much water as it is able to
furnish pro-rata with the rightful require~e~ts of its own uses and
of its o'~her customers. It is understood ths. t no'thing herein con-
taine~ s.hall be construed as giving O~mers-Developers any preference-
or priority to service over and above any other customer of the City,
either now or in the future.
2. During the continuance of this contract, the Cityshal! ~o'~
be responsible for the maintenance or repair of transmiss~.on or water
n~ains, or supply lines within the property,~%/~.~'~~%%~ How-
ever, all such mains or supply lines installed mustcomply with the
City's specifications.
8. .(a) From and after the date when Ownors-Developers shall
take and use water into its property mnder ~his agreement, the
Developers (unless rate changed as 4ereinaf~r set forth) shs. ll
to the C~ty'on or before the 20th day of every month thereafter ~?.~ a--
mount equa~ to the sum of 22¢ per 1,O00 gallons of water delivere~
through sa~d mast?.meter, computed to the n~arest fraction of 1~000
gallons, w~th a m~n~mum charge of $50.00 monthly. Bills covering the
water charges determined as above provided shall be rendered monthly
on approximately the 10th day of each month and payment to the City
shall be made within SO days after such billing. The City shall have
right to shut off water for non payment, and all other rights herein
provided or existing.
(b) The rate hereinabove provided of 22~ per 1,000 gallons
of water delivered shall be adjusted on a semi-annual basis commenc-
ing six months from date of execution of this contract in such fashion
that the City shall never receive less than a 10% profit over its
cost incurred, which costs shall be detemined in accordance with the
followimg formula: '
C = 0 % N- A X 1,000
MAY 29, 1959.
in which:
"C" is the cost of water per 1,000 gallons;
"0" is the reasonable and necessary operating expenses
(in dollars) which includes all costs involved in actual pro-
duction, treatment and distribution as well as the overhead,
accounting.and collection and depreciation of the plant and
equipment ~n service.
"N" is the reasonable and necessary, non-operating ex-
pense (in dollars) which includes all other expenses related
to operating expense, but net properly classified as such, in-
cluding debt administration~and bond interest (payment of bond
principal is not included).
~A" is the amount of money transferred to the General
Fund to cover cost of supervision, billing and collection of
accounts.
"V" is the volume of water (in gallons) produced and
pumped from the water plants.
The financial records and reports of the City of Delray .
Beach shall be the source of information for use in computing the for
mula.
In no event, however, shall~he O~mers-Developers be charged more
than the retail rates of users within the same category, same sized
meters, etc., as same from time to time may be specified by the ordi-
nance setting retail rates in the City of Delray Beach.
4. The Water taken or used by the Owners-Developers under this
agreement shall be measured at the master meter to be furnished City
at Owners-Developers cost. Said meter shall be installed andmain-
tained by the City. If any such meter so installed fails to register
properly at any time during any month, the proper regSstration during
such month shall be determined by agreement or by estimate upon the
basis of corresponding period in which the system was opera,ed under
sonditions similar to tho~e-existing during the month in which failure
to register occurred. A $1,000.QO bond will be ~laced with City to
guarantee water payments due from0wners-Developers.
No allowance shall be'~made on any bill on account of claim
for inaccuracy of measurement, unless the Owners-Developers shall, in
writing, request such allowance within thirty days from the date on
which such bill is rendered, and shall apply for proper test or recal-
ibration of the meter. If it shall be shown by test that the meter is
inaccurate to the extent of §% or more, proper allowance, as shown by
the test to be necessary shall be made to the party entitled thereto,
but not for a longer period than that covered by the bill on account
of which allowance is claimed.
The Owners-Developers shall not open or close the meter, nor
interfere with the City's apparatus or equipment, nor permit any un-
authorized person to do so.
$, Owners-Developers shall not have the right to furnish water
service to other properties outside their above described properties
unless the written consent of the City be first obtained.
6o Upon City supplying water t~rough the master meter as afore-
said, Owners-Developers covenant and agree to supply water to all of
the said property at the same price as those set forth in Chapter Z?
of the Code of Ordinances of the City of Delray Beach, as ~hcy exist
at this time, or as they may be amended from time to time xn the
future.
If the Owners-Developers default in the performance of ~ny
obligation under this agreement~ either by failure to pay for water
when due, or by failure to servxce the property, or b~ breach of any
other term and condition of this agreement, then the City may, and at
its option, terminate this agreement, and forthwith take exclusive
possession and operate the water system in said property, and the sole
right remaining to Owners-Developers shall be as set forth in Para-
graph 8(b) of this agreement.
MAY 29, 1959
?. It is understood by the parties hereto and it is hereby made
a part of this agreement that at the end of any current monthly ~eriod
during the life of this agre. e.ment, the schedule o.f charges, or tVh~ rate
as set forth in Paragraph $(b) hereof' may be revised, adjusted and a-
mended to. such an ex~en~ as exis.ttng c~o~ndi~t.~ions .m~.y warrant in or.der
for the C~ty to. comply with Section ?(9) (x) of ~ts Charter and w~th
Ordinance No. G 268, adopted July Sth, 1957.
8. !a) This agreement~shall extend for t.hirty years,.except
that the C~ty may, and does her~ey reserve the'right and. option, to
term~_~ate this.contract.by paying to Ownems-Develope.rs 50%of i.ts
gross cost of installation of the water system any.t~me after f~ve
years from the date hereof; a.nd upon pa.y~ent of sa~d sum Owners-Devel-
opers shall have no further r~ght in sa~d system or under this agree--
men t,
(b) In the further event that this agreement may be terminated
for the breach o~ defau.lt of O~ners-Developers, or in the event this
agreement shall be termunated by law or other reason (than the City's
exercising its option above), then in such event the only obligation
of City to Owners-Developers shall be as contained in Ordinance
adopted January 1S, 1958. In the case of default by Owners-Developers
of any provision of th~.s ~agreement other than .the payment of bills
rendered as set forth zn Paragraph $, the City shall provide the
Owners-Developers with a written notice of default and the Owners-
Dev.elopers shall have sixty days from the date of delivery of such
notzce to cure such default.
9o The City shall have access at all reasonable hours to all the
Owners-Developers plans, contracts-and engineering, a.ccomnting, finan-
cial, statistical, customer and service records relating to the in-
stallation and operation of the Water Su~ply System herein. The
following re.cords and reports shall be fxied with the City Clerk:
(a) Copxes of such rules, regulations, terms and cond.itions a,
dopted by the Owners-Developers for the conduct and operation of the
system.
(b) An annual summary_repo~t showing gross revenues received from
its operations.within the .City during the prec. eding year and such
other informatxon as the C~ty sh~.ll r.equest with respect to p~operties
and expenses related to the servxce w~thin the City.
The Owners-Developers, or their authorized agents, shall have nc-
c.ess to Ci.ty's~ records fgr. determination of rates hereinabove pro-
v~ded for ~n Pamagraph $(b).
10. It is agreed between the parties that UPon construction of
the water main to~ the point where the master meter will be installed,
t.he water main so constructed and lying in areas outside the sub-
d~visions of Owners-Developers shall be conveyed to the City, .sub~e.ct,
however, to the provisions regarding payment for same as contained ~n
Paragraph 8 hereof.
11. This contract~is subject and subordinate to the-terms and
conditions of Ordinance G-268 passed July 8, 1957.
12. This contract shall be binding upon the successors and as-
signs of the parties hereto.
IN WITNESS WHEREOF, the said pa.~ties have caused this agree-
ment to be executed by their duly authorized officers, the day and
year first above mentioned.
121
MAY 29, 1959.
CITY OF DELRAY BEACH
MAYOR
ATTEST: SOUTH COAST DEVELOPMENT CORP.
Assistant ~ SeCretarY By
ATTEST: TROPICAL PAINS, INC.
,, , ....
se~etar~ ......... Fi{~S~DENT . ......
Commissioner Warren then moved for ADOPTION of the "Sewage A~ree-
lB · · , · o, .
ment submmtted by the C~ty Manager. Mot:~on was seconded by Commas
si°net Harbison and upon Call off'Roll was unanimously approved by the
Council.
"SE~;AGE AGREEKENT", as Adopted, is as follows:
SEWAGE AGREEMENT
THIS AGREEMENT, Made and entered intO. this SOth day of N~.y, A. D.,
1959, between CITY OF DELRAY BEACH, a municipal corporation ~n Palm
Beach County' Florida, of the first part hereinafter called "City";
and SOUTH COAST DEVELOPMENT CORPORATION lthe subdivider and owner of
lands platted and desc. ribed as Tropic Pa]m~, Plat No. 2), and
TROPICAL PALMS, INC. (the subdivider .and owner of lands platted and
described as Tropic Palms, Plat No. 3), of the second part, herein-
after called "Owners-Developers" or ASsignees.
V~EREAS, upon petition of the foregoing Owners, the City did on
January 13, 1958, a. nnex the said Tropic Palms, Plat No. 2, and Tropic
Palms, Plat.No. 3. (which shall hereinafter be collectively referred
to as "property"), under the terms and conditions set forth in Ordi-
nance No... G-277; and
WHEREAS, said Owners are about to develop said property by con-
structing buildings, residences and other improvements thereon, and in
order to meet requirements of certain Federal Board of Health, as to
health requir, ements, and the Vet~erans' .Administr.ation, the Federal
Housing Administration and priv~%e lending agencies, as to financing
and other requirements, it is necessary that adequate water and sewer
facilities be provided for or made available to each building or resi-
dence conetructed on said property; and
WHEREAS, Owners are willing to undertake the construction, instal-
lation and completion of a sewer system for said properties, and to
install water mains and' supply lines for such properties, so that all
buildings and residences constructed .on Owners-Developers property by
Owners-Developers or by.any person, fmrm or corporation holding by,
through or under Owners Developers,may have furnished to them and to
their occupants an adequate domestic water.supply and sewer disposal
'set.vice, subject to all the terms and conditions of this agreement.
NOW, THEREFORE, IT IS MUTUALLY AGREED AS FOLLOWS:
1. The City does hereby consent to Owners-Developers installing,
maintaining and operating a private sewer system with treatment plant
to service the property; provided, however, the City must first ap-
rov.e in writing t.he engineering plan and all installations must be
o C~ty specifications.
122
MAY 29, 1959.
2. Owners-Developers sha~l pay the entire cost of installation,
of the sewage treatment and dispOsal plant, the lift stations, the
force mains and distribution mains, and ether portions required.
$, This agreement shall extend for thirty ($0) years. However,
after
at any time five years from the date of this agreement, City
shall ~ave the option to purchase the complete.sewage disposal s~ste~i
including the sewage treatment plant and all distributions and collec~
tionmains at the appraised value thereof. In the event City elects
to exercise its option, it shall so notify Developers in writing and
thereupon City shall appoint one'appraiser; Developers shall appoint
one appraiser and the two appraisers shall appoint a third. Both par-
ties agree to be bound by the price set by a majority of the three ap-
praisers. City shall ma4e payment in full to Developers for the en-
tire system within sixty days after the majority of appraisers have
set the purchase price.
4. The Owners-Developers covenant and agree that they will adopt
a schedule of rates and charges for such sewer system conforming sub-
stantially and no higher than those oharged for similar services in
Palm Neach Comity, Florida, and which charges shall be the same as **
5.'~ Owners-Developers shall be liable for all damages occasioned
b~y the acts, negligence or injury to the rights of other persons,
firms or corporations in the same manner and with the same limitations
as any other private corporation.
6. The City shall have access at all reasonable hours to all the
Owners-Developers plans, contracts and engineering, accountinE, finan-
cial, statistical, customer and service records relating to the pro-
perty and the operation of the sewage disposal system. The following
records and reports shall be filed with the City Clerk.
(a) Copies of such rules, regulations, terms and conditions a-
doptedby the Owners-Developers ~or the conduct of the sewage disposal
system.
(b) An annual summary report showing gross revenues received from
its operations within the City during the preceding year and such other
information as the City shall request with respect to properties and
expenses related to the service within the City.
?. Owners-Developers agree, subject to delays caused by acts of'
God, the elements, labor troubles, accidents and any and all causes
not reasonably within its control, and while the owner of said distri-
bution lines, to replace all streets, excavated, opened, or torn up by
it, in as good condition as they were prior to such excavation, open-
ing, or tearing up, with as little delay and hindrance to the abutting
proper~y owners as reasonably possible, and the City agrees to grant .
~uch rights of ways as'are reasonably necessary to fulfill the object
ives of this agreement.
8~ This agreement shall be binding upon the successors and as-
signs of the parties hereto.
IN WITNESS ~-~EREOF, the said parties have caused this agree-
ment to be executed by their duly authorized officers, the day and
year first above mentioned.
** those charged by the City of Delray Beach at such time when sewer fa-
cilities may be installed within~said City.
MAY 29, 1959.
continued
ATTEST: CITY OF DELRAY BEACH
By
¢it~ ci'e~k- .............. ~ A 'Y 0 '~ .......
ATTEST: SOUTH COAST DEVELOPMENT CORP.
By
' ' AssiSTANT SECH~T~HY ..... PRESIDENT
ATTEST: TROPICAL PAI~viS, INC.
By
o ~ c r e ~] a ry i~ESIDE~'.T
MAY 29, 1959.